The Earlier the Better
It’s true that the earlier you start your pension, the better. You have the benefit of time on your side and a regular amount saved every month can accumulate to a significant sum of money by the time you reach retirement.
Whatever you see yourself doing it is important to consider what your goals are and how you are going to achieve them prior to retirement itself. Remember it is never too late to start planning and every bit you put aside puts you closer to achieving the type of retirement you want.
When you contribute to a pension, the net cost or the ‘real’ cost to you isn’t as high as you would initially think. The Government provides generous tax relief on earned income to encourage pension saving. Consider if you save money in the bank. You decide to pay in €100 every month. That’s what it costs you. However if you save this money in a pension, you get tax relief on this amount. So if you are a 20% tax payer, you’ll get a tax refund / reduction of €20 for every €100 you pay. If you’re paying income tax at the higher rate (40%), the actual cost to you of every €100 that you pay into a pension is €60 (€100 – €40). This will help you build up a decent investment much quicker.
Review & Plan
If you have started saving for your retirement, when was the last time you reviewed your monthly payment? If you haven’t made any plans yet for your retirement, then make a plan today to get down to it.
Check with your employer
If you are employed, then you might check with your employer to see if there is a pension plan in place for employees of the company. If there is, then it’s possible that your employer may make payments to the pension in addition to any payments that you make personally, which will increase the value of your fund over time.
If your employer doesn’t have a pension scheme in place or you are self-employed, there are a number of options available to you and our advisors can take you through those options and select a plan and a level of monthly payment that’s right for you.
If you would like to find out more about setting up a pension or review your current pension arrangements, get in touch today. Our dedicated team will be delighted to hear from you. Your retirement might seem like a long way away but, financially speaking, the younger you are when you start, the better.
All the best,
The Team at Gallivan Financial